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Quality ladders in a ricardian model of trade with nonhomothetic preferences

Jaimovich, E and Merella, V (2012) Quality ladders in a ricardian model of trade with nonhomothetic preferences Journal of the European Economic Association, 10 (4). pp. 908-937.

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Abstract

The North-South trade literature has traditionally explored conditions under which international trade might further magnify income disparities between the advanced North and the backward South. We show that even when no single country is initially more advanced than any other one and productivity changes are uniform and identical in all countries, trade may still be a source of income divergence when nonhomothetic preferences and quality ladders are jointly taken into account. Income divergence will be experienced when comparative advantages induce patterns of specialization that, although initially optimal for all countries, do not offer the same scope for quality upgrading of final products. © 2012 by the European Economic Association.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > School of Economics
Authors :
AuthorsEmailORCID
Jaimovich, EUNSPECIFIEDUNSPECIFIED
Merella, VUNSPECIFIEDUNSPECIFIED
Date : 1 August 2012
Identification Number : 10.1111/j.1542-4774.2012.01077.x
Additional Information : This is the peer reviewed version of the following article: Jaimovich, E and Merella, V (2012) Quality ladders in a ricardian model of trade with nonhomothetic preferences Journal of the European Economic Association, 10 (4). 908 - 937, which has been published in final form at http://dx.doi.org/10.1111/j.1542-4774.2012.01077.x. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Depositing User : Symplectic Elements
Date Deposited : 01 Dec 2015 17:00
Last Modified : 01 Dec 2015 17:00
URI: http://epubs.surrey.ac.uk/id/eprint/809086

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